GOLDCREST Co.,Ltd. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

GOLDCREST Co.,Ltd. (TSE:8871) defied analyst predictions to release its quarterly results, which were ahead of market expectations. It was a solid earnings report, with revenues and statutory earnings per share (EPS) both coming in strong. Revenues were 12% higher than the analysts had forecast, at JP¥11b, while EPS were JP¥75.12 beating analyst models by 127%. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.

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Taking into account the latest results, the current consensus, from the two analysts covering GOLDCRESTLtd, is for revenues of JP¥30.5b in 2026. This implies a chunky 8.6% reduction in GOLDCRESTLtd's revenue over the past 12 months. Statutory earnings per share are expected to decline 19% to JP¥155 in the same period. Before this earnings report, the analysts had been forecasting revenues of JP¥30.4b and earnings per share (EPS) of JP¥149 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

Check out our latest analysis for GOLDCRESTLtd

There's been no major changes to the consensus price target of JP¥3,270, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 11% by the end of 2026. This indicates a significant reduction from annual growth of 2.0% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 4.5% per year. It's pretty clear that GOLDCRESTLtd's revenues are expected to perform substantially worse than the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards GOLDCRESTLtd following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that GOLDCRESTLtd's revenue is expected to perform worse than the wider industry. The consensus price target held steady at JP¥3,270, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on GOLDCRESTLtd. Long-term earnings power is much more important than next year's profits. We have analyst estimates for GOLDCRESTLtd going out as far as 2028, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 2 warning signs for GOLDCRESTLtd (1 is potentially serious!) that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.